Societe Generale SA said Monday that it will cease its banking and insurance activities in Russia, including selling Rosbank.
The French bank said it would divest its entire stake in Rosbank and Russian insurance subsidiary to Interros Group, a previous shareholder of Rosbank.
SocGen said the disposal would lead to an around 2 billion euro ($2.18 billion) write-off of the net book value of the divested activities, and an exceptional noncash item of about EUR1.1 billion.
The impact of the disposal of Rosbank and the insurance activities on the bank's CET1 capital-buffer ratio is expected to be around 20 basis points, though the Paris-based bank said it would remain comfortably above its own guidance.
Previously, SocGen said its exposure to Russia was 1.7% of the group's total exposure at the end of last year, with activities in Russia generating 2.7% of net earnings in 2021. Most of that exposure is made up of EUR15.4 billion exposure at Rosbank.
The transaction is expected to close in the coming weeks, subject to the approval of regulatory and antitrust authorities, the bank said, Market Watch reports.
